Dixon Technologies shares: Multibagger stock trading in a range, here's what analysts say 

Shares of Dixon Technologies are trading in a range this year, with investors waiting for a breakout to decide their next move. However, Dixon Technologies shares are in a bull run when it comes to the rally from the 52-week low.  Dixon Technologies shares have gained 53% from their 52-week low reached on July 23, 2024. The stock logged maximum gains in the second half of last year. This year, the stock has lost 10%.   

In the current session, the electronics manufacturing services (EMS) firm's stock was trading nearly 2% higher at Rs 16,249 on BSE. Market cap of the firm rose to Rs 98,164 crore. 

The multibagger stock has risen 288% in two years and gained 311% in three years. The stock has risen 1041% in five years. 

Turnover rose to Rs 22.35 crore as 0.14 lakh shares of the firm changed hands on BSE. 

Shares of Dixon Technologies are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signalling the trend has been on a positive side for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 63.4, signaling it's trading in the neither in the overbought nor in the oversold territory.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One said, "Dixon has demonstrated a notable resurgence in the current fiscal year following a decline from its lifetime highs. The stock is currently positioned above all major EMAs, as well as the 200-day SMA. From a technical perspective, the stock appears to be approaching a sloping trendline and is poised for a potential breakout. The intermediate resistance is identified around Rs 16400- Rs 16450, with a more substantial hurdle at Rs 16700. A breach of these levels may initiate fresh momentum in the stock. On the downside, Rs 15500- Rs 15275 is expected to provide support against any short-term fluctuations. Moreover, the upcoming quarterly earning is likely to serve as a critical factor in shaping the near-term trend for the stock."

Ravi Singh, Senior Vice President of Retail Research at Religare Broking says the stock has been rangebound in the near term. 

"Dixon Tech continues to trade within a symmetrical triangle pattern and exhibits a range-bound price action between 1000 points. Prices face a hurdle near the 16,500 where the descending trendline is placed, while strong support is placed at Rs 15,500, aligned with the short-term moving average of the 20-Day EMA. On the daily chart, RSI stands at 64, while 14-Day ATR is 400, indicating that any decisive breakout from this consolidation range could trigger a nearly 400-point rally in the short run.  Considering the price action, wait and watch is more prudent rather than any aggresive trade, so that a long position should be built in the Rs 16,500– Rs 16,700 range, with an upside potential of Rs 17,000 to  Rs 17,400 in the near term. To protect against any downside risk, it’s recommended to put a strict stop-loss below Rs 16,200. On the downside, any decisive fall below the Rs 15,500 level could breach the consolidation zone and propel prices towards Rs 14,900 to  Rs 14,400," said Singh. 

A R Ramachandran, SEBI registered Independent analyst says, "Dixon Technologies stock price is bearish on the Daily charts with strong resistance at Rs 16450. A Daily close below support of Rs 15882 could lead to a target of Rs 14778 in the near term."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "The Dixon stock has maintained a steady uptrend since mid-June, establishing a sequence of higher highs and higher lows. The stock is now trading firmly above all its key moving averages, including the 200-day simple moving average, which it reclaimed with strength. Notably, a positive crossover among the short-term moving averages has emerged, highlighting the ongoing upward momentum.

The zone between Rs 15,400 and Rs 15,300, which earlier acted as a pivotal resistance has turned into a support area, now stands out as a favourable accumulation zone. The daily RSI is currently placed at 56, suggesting there’s room for up move continuation, while the weekly RSI holds at 63, supporting a medium-term bullish outlook.

The volume has remained steady through the advance, and there has been a visible uptick in delivery-based participation. The recent move has been orderly, and the stock is consolidating just below a declining trendline drawn from its previous major peak. Currently, the stock is in a minor pullback phase. To re-enter or initiate fresh exposure, a retracement toward Rs 15,400–15,300 could offer a better risk-reward alignment. Accumulating in tranches remains a preferred approach as long as the stock sustains above Rs 15,100 on a closing basis. A close above Rs 16,300 may open further upside potential toward Rs 16,800 to Rs 17,400."

The firm will announce its June quarter earnings on July 22. 

Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.